China holds key economic meeting to plan for 2021

SHANGHAI, Dec 21 (SMM)—The annual Central Economic Work Conference was held in Beijing from Wednesday to Friday, as Chinese leaders charted course for the economy in 2021.

In a speech at the conference, Xi Jinping, general secretary of the Communist Party of China Central Committee, Chinese president and chairman of the Central Military Commission, reviewed the country's economic work in 2020, analyzed the current situation and arranged the economic work for next year.

This year is an unusual year in the history of the People's Republic of China, as the country faces severe and complicated international situations, arduous tasks in seeking reform, development and stability at home, and heavy blows from the COVID-19 epidemic in particular, the meeting said.

The country has become the only major economy with positive growth this year, and scored decisive achievements in three key battles, significant progress in sci-tech innovations, key breakthroughs in reform and opening-up as well as improvements in people's livelihood.

China will keep its macro policies consistent, stable and sustainable in 2021, according to a statement released Friday after a tone-setting economic meeting.

The country will continue to implement proactive fiscal policy and prudent monetary policy, amid efforts to maintain necessary support for economic recovery.

In 2021, China will adopt a fiscal policy that offers stronger financial guarantees to major national strategies as well as promotes science and technology innovations, accelerates economic structural adjustment, and adjusts income distribution in a proactive manner. In the meantime, solid efforts should be made to resolve hidden debts of local governments, the statement said.

China will implement a monetary policy that is flexible, precise, reasonable and moderate, according to the meeting, which stressed that money supply and aggregate social financing should grow at basically the same level with the country's nominal economic growth.

Banks' capital should be replenished through multiple channels, and efforts should be made to improve the legal system in the bond market.

The meeting also urged stronger financial support for science and technology innovations, the small and micro firms, and green development.

China will deepen the market-oriented reform of interest rates and exchange rates, and keep the yuan's exchange rate generally stable on a reasonable and balanced level, according to the statement.

The country will work to ensure that its economy runs in an appropriate range. It will appropriately manage the tempo and strength of its macro-control, and implement targeted and effective macro policies, the statement said.

Efforts should be made to continue spurring the vitality of market entities, especially the micro, small and medium-sized enterprises and individually-owned businesses, through improving the country's policies related to cutting taxes and administrative fees, improving inclusive financial services, and promoting reform and innovation, it said.

China shall rely on innovation to advance the development of its real economy and promote high-quality development of the manufacturing sector, the statement said.

The potential of the domestic market should be fully tapped, the statement said, calling for the expansion of consumption and effective investment that is oriented toward improving people's livelihoods.

Efforts should be made to comprehensively advance rural vitalization, deepen reforms in key areas to improve business environment, strengthen pollution prevention and control, promote employment and continuously improve people's lives, according to the statement.

China will promote employment, improve its social security system, optimize income distribution structure and expand the middle-income group as part of efforts to expand domestic consumption.

The country will lift some administrative restrictions on purchases in an orderly manner and tap into the consumption potential of counties and townships.